12-01-04

Barrett calls for amnesty for Tax Credit overpayments

John Barrett, Liberal Democrat MP for Edinburgh West, today called on the Inland Revenue to write off the repayments that many families have to pay after receipt of overpaid tax credits.

A report by the Citizens' Advice Bureaux last month showed thousands of families from across the UK are having child or work tax credits cut because the Inland Revenue overpaid them by mistake.

Mr Barrett has signed a House of Commons motion calling on the Inland Revenue to introduce "an amnesty in respect of all overpayments of tax credits made in the year 2003-2004" unless caused by fraud. The motion has been backed by MPs of all three main parties.

Commenting, John Barrett MP said:

"The consequences of the Government's botched introduction of tax credits are still being felt.  As if the intolerable delays that many families faced in getting their credits were not bad enough, thousands have now been overpaid directly because of the Inland Revenue's incompetence.  Now their future payments are being reduced or worse still withdrawn altogether.

"In many cases, we are talking about families which depend on these tax credits just to get by.  Cutting or withdrawing their future credits will only force families into further hardship and undermine the Government's whole strategy for tackling child poverty.

"The Government must now realise the errors which have been made and instruct the Inland Revenue to offer a reprieve for those families which have suffered through no fault of their own."

ENDS